At first glance, the suspension of flights to two Chinese cities does not look like a big deal for Singapore Airlines Ltd. After all, Chongqing and Chengdu are not major routes for the renowned carrier that boasts 130 destinations around the world, but the move could put a dampener on one of the strongest friendships in the region.
From Sunday, services between the city-state and China’s fourth and sixth-largest metropolises are to be halted less than five months after they began, the Straits Times reported, citing a company spokesperson, who declined to elaborate.
The airline did not receive approval from the Civil Aviation Administration of China, the second time in a year that the company’s flights to the country have been interrupted by regulatory uncertainty, the Chinese-language Singapore daily Lianhe Zaobao reported.
Last year, Korean Air Lines Co and Asiana Airlines Inc started severing routes to China. Those cuts were in part mandated by a planned merger between the two carriers, but also came amid increased tensions between the countries and ongoing limits imposed by China, including restrictions on group tourism.
Air China Ltd or Chongqing Airlines Co could pick up the vacated slots left by the recent suspension, Bloomberg Intelligence estimates.
Singapore Airlines would be fine. The two cities accounted for just 1 percent of its scheduled China seats in the first quarter, Bloomberg Intelligence analysts Tim Bacchus and Eric Zhu wrote. The suspension, which so far only applies to the summer and autumn flight seasons, might be temporary, they wrote.
However, the cancellations and the lack of clarity for why do not augur well for close links between China and one of its friendliest regional neighbors. As Asian nations, including Japan, South Korea and the Philippines, grow wary of Beijing’s expansion, Singapore has stood solid.
The importance of aviation links extends beyond merely shuffling passengers from place to place. They are a sign of political and economic ties. National airlines are called flag carriers precisely because of that symbolism.
In this context, the suspension of flights for any reason could only be seen as a step back, especially as foreign investors turn away from the world’s second-largest country. Inbound direct investment plunged 82 percent last year to the lowest in three decades. A slowing economy and higher interest rates overseas are just part of the problem. More broadly, geopolitical tensions and ongoing difficulties doing business in China — including conducting research and due diligence — have made the risks not worth the diminishing rewards.
Singapore could help fill the gap. It is one of the largest sources of foreign direct investment into China and has maintained largely strong ties across tourism, commerce and finance.
However, minor hiccups, like cancelled flight schedules, reduce certainty and increase the opacity.
That means carriers which are struggling to boost capacity due to a shortage of pilots, ground staff and planes, would need to rethink how highly they prioritize Chinese destinations in route planning.
India is becoming a major aviation market and will becomeing a growing destination for international flights. New Delhi has earmarked US$11 billion for new aviation infrastructure, with a plan to increase the number of airports by one-third of the next five years.
Meanwhile, growing trade and tourism within Asia makes the likes of Vietnam, Japan and Taiwan more attractive, and if Beijing decides to prioritize local carriers when allocating slots, then foreign airline executives would surely start to take the hint and send their aircraft elsewhere.
Carriers plan their routes and capacity years in advance, and with escalating costs they are unlikely to allocate resources to places where they start to feel unwelcome.
As the most powerful symbol of its nation’s goodwill, and brand, Singapore Airlines would brush off this setback with ease. However, relations between China and Singapore could do without the extra friction.
Tim Culpan is a Bloomberg Opinion columnist covering technology in Asia. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
After nine days of holidays for the Lunar New Year, government agencies and companies are to reopen for operations today, including the Legislative Yuan. Many civic groups are expected to submit their recall petitions this week, aimed at removing many Chinese Nationalist Party (KMT) lawmakers from their seats. Since December last year, the KMT and Taiwan People’s Party (TPP) passed three controversial bills to paralyze the Constitutional Court, alter budgetary allocations and make recalling elected officials more difficult by raising the threshold. The amendments aroused public concern and discontent, sparking calls to recall KMT legislators. After KMT and TPP legislators again
Taiwan faces complex challenges like other Asia-Pacific nations, including demographic decline, income inequality and climate change. In fact, its challenges might be even more pressing. The nation struggles with rising income inequality, declining birthrates and soaring housing costs while simultaneously navigating intensifying global competition among major powers. To remain competitive in the global talent market, Taiwan has been working to create a more welcoming environment and legal framework for foreign professionals. One of the most significant steps in this direction was the enactment of the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) in 2018. Subsequent amendments in
In competitive sports, the narrative surrounding transgender athletes is often clouded by misconceptions and prejudices. Critics sometimes accuse transgender athletes of “gaming the system” to gain an unfair advantage, perpetuating the stereotype that their participation undermines the integrity of competition. However, this perspective not only ignores the rigorous efforts transgender athletes invest to meet eligibility standards, but also devalues their personal and athletic achievements. Understanding the gap between these stereotypes and the reality of individual efforts requires a deeper examination of societal bias and the challenges transgender athletes face. One of the most pervasive arguments against the inclusion of transgender athletes
US President Donald Trump on Saturday signed orders to impose tariffs on Canada, Mexico and China effective from today. Trump decided to slap 25 percent tariffs on goods from Mexico and Canada as well as 10 percent on those coming from China, but would only impose a 10 percent tariff on Canadian energy products, including oil and electricity. Canada and Mexico on Sunday quickly responded with retaliatory tariffs against the US, while countermeasures from China are expected soon. Nevertheless, Trump announced yesterday to delay tariffs on Mexico and Canada for a month and said he would hold further talks with
RSS